0
Ceteris paribus does translate into meaning "all other things being equal or held constant.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What does higher interest rates in mortgage lead to?
Higher mortgage interest rates inherently reduces the public demand for mortgages since price level has an inverse relationship with demand. Ceteris paribus (all other things remaining equal) the interest rate will return to the rate at which the both the price level and quantity of mortgages taken will achieve maximum values.
What is ticker symbol for Bank of the West?
Bank of the West is fully owned by BNP Paribus, one of the largest banks in Europe. BNP Paribus trades on the Euronext under the ticker symbol BNP.
Examples of law of diminishing returns?
Suppose that one kilogram of seed applied to a plot of land of a fixed size produces one ton of crop. You might expect that an additional kilogram of seed would produce an additional ton of output. However, if there are diminishing marginal returns, that additional kilogram will produce less than one additional ton of crop (ceteris paribus). For example, the second kilogram of seed may only produce a half ton of extra output. Diminishing marginal returns also implies that a third kilogram of seed will produce an additional crop that is even less than a half ton of additional output. Assume that it is one quarter of a ton. In economics, the term "marginal" is used to mean on the edge of productivity in a production system. The difference in the investment of seed in these three scenarios is one kilogram - "marginal investment in seed is one kilogram." And the difference in output, the crops, is one ton for the first kilogram of seeds, a half ton for the second kilogram, and one quarter of a ton for the third kilogram. Thus, the marginal physical product (MPP) of the seed will fall as the total amount of seed planted rises. In this example, the marginal product (or return) equals the extra amount of crop produced divided by the extra amount of seeds planted. A consequence of diminishing marginal returns is that as total investment increases, the total return on investment as a proportion of the total investment (the average product or return) decreases. The return from investing the first kilogram is 1 t/kg. The total return when 2 kg of seed are invested is 1.5/2 = 0.75 t/kg, while the total return when 3 kg are invested is 1.75/3 = 0.58 t/kg. Another example is a factory that has a fixed stock of capital, or tools and machines, and a variable supply of labor. As the firm increases the number of workers, the total output of the firm grows but at an ever-decreasing rate. This is because after a certain point, the factory becomes overcrowded and workers begin to form lines to use the machines. The long-run solution to this problem is to increase the stock of capital, that is, to buy more machines and to build more factories.
Why do economist used ceteris paribus?
Economists used ceteris paribus to separate cause and effect by holding all other things constant.
What is the name of the assumption that means holding all things constant?
ceteris paribus
What is the ceteris paribus assumption?
Ceteris paribus is a Latin phrase used widely in economics. It assumes that all things are equal, excluding outside variables.
What is the ceteris paribuss?
Ceteris paribus means "with all other things being equal or held constant."
The Latin expression ceteris paribus means?
Ceteris Paribus means "assuming all else is held constant". The author using ceteris paribus is attempting to distinguish an effect of one kind of change from any others.Index from: http://economics.about.com/od/termsbeginningwithc/g/ceteris_paribus.htm
What does ceteris paribus means?
Ceteris paribus means all else equal. This is especially popular in the study of economics. It is used a lot in economic because it studies the complex relationships of human behavior and the market. The concept of ceteris paribus is used look at one change while holding everything else constant to gain an understanding of what changes in a complex web of relationships. An example in macroeconomics is what would happen if the interest rate increased while all other factors remained constant like: economic output, unemployment, input price, and whole wide plethora of other variables. It is useful to understand this in order to see in future situations how these variables can be manipulated in order to avoid economic disaster like rampant inflation or depression so that the welfare of the people is not dramatically affected.
Ceteris paribus or all other things held constant is an assumption that has what effect on a demand schedule?
It takes only prices into account.
The ceteris paribus assumption is used in economics?
yes
What is the Latin translation for all things equal?
Ceteris Paribus
What is the importance of ceteris paribus assumption in economic?
Balls Deep
What are the Four elements of the economic way of thinking?
- Use Assumptions to simplify - Isolate Variables--Ceteris Paribus - Think at the Margin - Rational People Respond to Incentives
Ceteris paribus or all other things held constant is an assumption that has what effects on demand schedule?
It assumes only prices will change. -458 :D
